EU exec rejects Greek, Italian requests for more fiscal rules flexibility
On October 8, the European Commission rejected Italian Prime Minister Giorgia Meloni's and Greek Prime Minister Kyriakos Mitsotakis' requests for more flexibility in fiscal rules. The Commission argued that rules cannot be altered frequently, particularly in the face of rising inflation caused by energy prices. Italian and Greek leaders had asked for adjustments to budget deficits and spending deviations due to unexpected inflation rates.
The European Economic Commissioner Valdis Dombrovskis stated that the Commission cannot provide new fiscal flexibilities frequently, as it could undermine the credibility of the fiscal sustainability commitment. The Commission has already granted leeway in fiscal consolidation paths for higher defence spending and measures to reduce reliance on fossil fuels.
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